media studies

p Media Studies

The term `Competition , in economics , states and emphasizes the idea that the agents of the economy i .e . firms and individuals strive for the given market to get the majority chunk for themselves with their limited resources . As per the dictionary meanings , Merriam-Webster , competition means "the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms " It was described by several economists as the allocation of factor inputs capital and productive resources to their most beneficial and

highest economic value uses and encourages efficiency . Microeconomic theory however , distinguishes between the two types of competition i .e . perfect competition and imperfect competition . Perfect competition has such a huge number of market players that an individual cannot by any means have an impact on the overall market . The condition of imperfect competition has got several categories based on their market structure but one thing which they share in common is that their decisions and actions can have some or in other cases significant impact on the industry dynamics . Allocation of resources effectively , however , is much more efficient than perfect competition

Competition , according to the many accepted theoretical concepts , urges commercial firms to innovate and experiment with new products , services and technologies , to facilitate consumers with better choice , variety and enhanced quality in the products ' category . Thus the increased number of choices naturally pushes down the prices to a lower level for the products , compared to what the price...